So I just read a review of the Kia Optima and I got to thinking about an automotive issue that I have been considering for a few months.

Hyundai Kia Automotive Group are closely affiliated, and share many platforms. Their vehicles are similar in price. Hyundai and Kia both have moved upmarket, with Hyundai moving even further upmarket with the Genesi and Equus. Kia has a bit tigher suspension, and bit harder design language.

Why do these two manufactures exist? They seem to similar to me to make it worthwhile to continue to keep both brands around. Wiki says Hyundai owns only 34.58% of Kia as it stands (they used to own 51%). Is it wise for the group to keep these two brands alive, potentially having them cannibalize each others sales while offering very similar products?

I thought Hyundai would move upmarket of Kia, but Hyundai bought Kia in 1998 and I fail to see much differentiation in their product lines (at least in North America).

On that matter, I also am a bit perplexed that Hyundai has not spun off a luxury brand with a Westernized name to shed themselves of the negative perception that Hyundais still often carry.

What are your thoughts on this matter? Can anyone enlighten me?